Refinance Break-Even Calculator

✓ Good reasons to refinance

• Rate drops ≥ 0.75% on a large balance — monthly savings are meaningful
• You plan to stay in the home past the break-even period
• Shortening term (30yr → 15yr) even at similar rate saves massive interest
• Removing PMI by reaching 80% LTV through cash-in refi
• Switching from ARM to fixed before rate resets

✗ When it may not be worth it

• You plan to move before break-even (common in years 1–3)
• Break-even is 5+ years away — too much uncertainty
• Cash-out refi for discretionary spending resets your amortization clock
• Rate savings are small (under 0.5%) and closing costs are high
• Extending term length from 15yr back to 30yr increases lifetime interest